VAT Returns & Recovery in Austria
Every business in Austria that is registered for VAT, whether based domestically or internationally, must submit preliminary VAT reports periodically. These reports should detail taxable transactions and reverse charge invoices.
Depending on the taxable individual’s sales turnover, VAT returns are typically required to be submitted either monthly or quarterly. While the timelines for submitting periodic returns may vary among taxpayers, all are obliged to submit an annual return.
Read more about VAT recovery and VAT returns in Austria in our comprehensive guide.
VAT Returns in Austria
Filing Deadline
Austrian VAT returns, whether monthly or quarterly, must be filed by the 15th day of the second month following the close of the taxable period. Those with sales not exceeding EUR 100,000 from the previous year are required to file quarterly returns, though they have the option to file monthly if they choose.
Payments associated with these returns need to be completed within the stipulated filing deadline. While late payments for submitted returns don’t accrue interest, failing to file returns on time could result in penalties, amounting to up to 10% of the assessed tax payable.
Electronic Filing
In Austria, taxpayers are typically required to file their VAT returns electronically under Section 21 of the VAT Act, unless they lack sufficient internet capabilities to do so. The mandatory electronic filing must be done using the online platform known as “FinanzOnline”.
Interest and Penalties
In Austria, if a VAT return is not filed on time, a penalty of up to 10% of the tax payable may be imposed according to Section 135 of the Federal Fiscal Code.
On the other hand, late payment of VAT may result in an initial penalty of 2% of the VAT under Section 217 of the Federal Fiscal Code. If the tax remains unpaid for three months after becoming enforceable, a second penalty of 1% of the VAT may be imposed. Subsequently, a third penalty of 1% of the payable VAT may be levied after another three months have elapsed.
Selling in Austria?
VAT Recovery in Austria
Taxable individuals have the option to reclaim input tax from the government. Input tax refers to the VAT imposed on goods and services provided to them for taxable business endeavors, which are then utilized to offer taxable (output) services or supplies. To successfully claim the input tax, several conditions must be met:
- The recipient of the supply or the individual acquiring or importing the goods must be a taxable entity.
- The procured supplies must be intended for the recipient’s business operations.
- The individual seeking to claim the input tax needs to provide documentary evidence (like VAT invoices or receipts) substantiating the incurred input tax.
- The input tax claimed should be connected to supplies that are taxable within Austria.
However, there are circumstances under which input tax cannot be reclaimed, including the following scenarios:
- Procurement of goods or services intended for non-business purposes.
- Goods associated with the sale of VAT-exempt products or services.
- VAT paid to other EU Member States for goods supplied within those states.
- Input tax can be categorized into various types, including:
- VAT applied to goods and services provided within Austria.
- VAT paid during the importation of goods.
- VAT levied on intra-Community acquisitions of products.
- VAT applied to purchases of goods and services under the reverse-charge mechanism.
Refunds
Tax authorities dispense refunds to taxable individuals following the processing of the year-end VAT return. Should there be a delay in the payment of the due VAT refund beyond a deemed reasonable timeframe, interest will accumulate on the outstanding sum. This reasonable duration is subject to determination by the national court.
Businesses that are not established can file for a VAT refund within six months after the year during which the refund claim was ascertained, provided the claim is no less than EUR 400. However, individuals who are not registered for VAT are ineligible to reclaim refunds on their input VAT.
Last Updated: 11/10/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
